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Under Andy Grove's leadership, Intel has become the world's largest chip maker and one of the most admired companies in the world. In Only the Paranoid Survive, Grove reveals his strategy of focusing on a new way of measuring the nightmare moment every leader dreads--when massive change occurs and a company must, virtually overnight, adapt or fall by the wayside.

Grove calls such a moment a Strategic Inflection Point, which can be set off by almost anything: mega-competition, a change in regulations, or a seemingly modest change in technology. When a Strategic Inflection Point hits, the ordinary rules of business go out the window. Yet, managed right, a Strategic Inflection Point can be an opportunity to win in the marketplace and emerge stronger than ever.

Grove underscores his message by examining his own record of success and failure, including how he navigated the events of the Pentium flaw, which threatened Intel's reputation in 1994, and how he has dealt with the explosions in growth of the Internet. The work of a lifetime, Only the Paranoid Survive is a classic of managerial and leadership skills.

The Currency Paperback edition of Only the Paranoid Survive includes a new chapter about the impact of strategic inflection points on individual careers--how to predict them and how to benefit from them.

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Editorial Reviews

Amazon.com Review

Massive change is hitting corporate America at a furious and escalating pace, writes Andrew Grove in Only the Paranoid Survive, and businesses that strive hard to keep abreast of the transition will be the only ones that prevail. And Grove should know. As chief executive of Intel, he wrestled with one of the business world's great challenges in 1994 when a flaw in his company's new cornerstone product -- the Pentium processor -- grew into a front-page controversy that seriously threatened its future.
--This text refers to an out of print or unavailable edition of this title.

From Publishers Weekly

Keep looking over your shoulder, cautions Grove, president and CEO of Intel Corporation, because the technology that keeps changing the way businesses are run and careers are forged is on the verge of making every person or company in the world either a co-worker or a competitor. And be warned that there's a pattern to the havoc that forces us to regroup whenever we think we have a grip on things. The pattern is based on a series of revolutionary milestones, inevitable and unpredictable, that Grove calls strategic inflection points. They change things. Every significant development from railroads to superstores to computers has been a point of strategic inflection. Businesses and individuals are never the same once these points zero in to alter the status quo. For Intel, a manufacturer of computer works, a strategic inflection point was the transition from memory chips to microprocessors, and a great deal of this book details the way Intel handled this change, including furor that erupted when a minor flaw was discovered in its Pentium processor. Perhaps the quality that lifts this above other business books is its applicability to individuals. Copyright 1996 Reed Business Information, Inc.
--This text refers to an out of print or unavailable edition of this title.

Most Helpful Customer Reviews

Like many popular management books, Andy Grove's "Only the Paranoid Survive" is unlikely to knock your socks off with its insightful business advice. Rather, the book is chock full of common sense, backed up with case studies from the world of successful -- and not so successful -- American businesses. Although Grove wrote this book during the early days of the Internet bubble, he clearly did not get wrapped up in the all of the excitement of that era, much to his credit. His thoughts are measured, sensible and coldly rational, as befits an industry titan and the ex-CEO of the most successful chip company on the planet.If you haven't read this book, now is as good a time to do so as any. Today's readers have the benefit of knowing how technology and business have evolved since "Only the Paranoid Survive" was published in 1996. The seven years that have since elapsed reveal that Grove really knows what he's talking about. His understanding of how the Internet would affect Intel underscores his management prescience. And his skepticism regarding gee-whiz technological innovations like "Internet appliances" provides an interesting example of how Intel maintained its strategic focus, and emerged from the bubble as strong as ever."Only the Paranoid Survive" breaks no new ground in the business-management genre. But the book is well written, well organized, and well worth the read for those who want a glimpse inside the mind of an incomparable American success story.

Intel was one of the pioneers of Silicon Valley, one of a handful of household brand name companies that helped to create, and constantly reshape, the information technology landscape in the US, and the rest of the high-tech world. Andrew Grove was at the center of this company from its inception, and this is his story in his own words.

The information-economy industry, unlike the giant manufacturers such as GM that faced more stable markets, was singularly brutal and fast-changing. Roughly every eighteen months, newly minted microprocessor chips arrived with double the circuit density of the preceding generation, increasing both their capacity and speed. For decades, Intel had been an exemplar of success, assessed in 1998 as the third most valuable company in the world by market capitalization. Known for their loyalty and hard work, virtually all Intel employees shared in the ownership of the company via stock options.

Nonetheless, the company's success was constantly portrayed internally as tenuous and hard-won: in the mid-1980s, facing ferocious Japanese competition in the memory chip market segment, Intel re-engineered itself, focusing instead on the emerging microprocessor market segment. This is the core of Grove's book, and is a remarkable achievement - I vividly still recall how, in the late 1980s, we thought Japan was going to take over the PC industry - and it was Grove and his team that did it.

To do so, Grove engineered Intel's corporate culture so that it melded "control-freak management" with creative chaos: anyone could compete in an open, yet authoritarian "culture of innovation.Read more ›

The real value of this book is that it is written by someone, Andrew Grove, who has actual experiences and managed a start-up right up to a mega successful corporation. There are tons of management and marketing books written by people, based on case-studies and analysis, but lack actual experiences managing or working in a corporation.

The main concept of this book is on strategic inflection point, which is a time in the life of the business when its fundamentals are about to change. This change can either infer an opportunity to rise to new heights or signal the beginning of the end. Hence, this book is about the impact of changing rules, guidelines to assist in identifying those situations and about finding your way through those uncharted territories. This book serves to raise our awareness of going through cataclysmic changes and to provide a framework in which to deal with them.

This book uses Porter's competitive analysis strategy in terms of the 6 forces as a base. The 6 forces are

1. Power, vigor and competence of existing competitors

2. Power, vigor and competence of complementors

3. Power, vigor and competence of customers

4. Power, vigor and competence of suppliers

5. Power, vigor and competence of potential competitors

6. Power, vigor and competence of substitutes

Once a very large change happens in one or several of these 6 forces, a "10X" force is in effect. Very often the transition from a normal business environment to that of a "10X" business environment is very gradual and thus, it is difficult to pinpoint the exact time in which the "10X" force came about.Read more ›

This book is an enjoyable read that is written by the CEO of Intel, this book is noteworthy in that it describes in detail a rare event: the successful change in business models of an already large and successful company. Grove describes the influences of the overall business environment (and in particular addresses the concept of a "strategic inflection point"), the political dynamics and drama within Intel, and a candid view of what went on in his own head as Intel faced a crisis that could well have ended in disaster rather than triumph. Grove does a great service to other executives by reflecting on what he learned from this and related events at Intel. There is much to learn from here.

More About the Author

Andrew S. Grove emigrated to the United States from Hungary in 1956. He participated in the founding of Intel, and became its president in 1979 and chief executive officer in 1987. He was chosen as Time magazine's Man of the Year in 1997. In 1998, he stepped down as CEO of Intel, but continues as chairman of the board. Grove also teaches at the Stanford University Graduate School of Business. He lives in the San Francisco Bay Area..